IRS Breach & Tax Identity Theft

The IRS security breach has been a big topic in the news this year. The IRS is currently reporting that over 334,000 individuals may now be victims of tax identity theft due to a breach of their computer systems. The IRS is also reporting that there have been 610,000 fraudulent attempts to access consumer records via the IRS Get Transcripts site during a 3.5 month period this year.

Signs that your information may have been stolen to file a fraudulent return include:

You received a paper check for an IRS Refund that you weren't expecting. The IRS limits the number of refunds going into a single bank account to three. After a bank account is used three times, the IRS will start issuing paper checks to the address on file. Therefore, an expected refund check is an indication that your Social Security Number may have been used to file a fraudulent return.

I receive an E-File Rejection when filing your return. Typically, the fraudulent returns are filed early in the tax season and the IRS only allows one E-Filed return per Social Security number. Therefore, if your legitimate filing is the second return processed, then I will receive an error or rejection on the e-filing.

You receive a tax notice from the IRS regarding missing documents. Many people this year received a tax notice from the IRS stating that they forgot to file a specific form with their tax return. The problem was that they had not filed their taxes yet.

You receive a notice from the IRS that your ID may have been compromised. The IRS has implemented a number of new information testing criteria to help detect potential fraudulent tax returns. Therefore, if they see a return filed in your name that shows a large change from previous years, they will flag the return a potential fraudulent return and send you a notice.

The IRS reported that the number of fraudulent tax returns has risen from 50,000 in 2010 to 1,500,000 in 2014. They are reporting that they have either flagged or suspect 3,200,000 fraudulent tax returns have been filed in 2015.

Greenfield Mgmt & Tax Services did a review of different alternatives for Identity Protection. We are recommending the iDefend products because they offer 3 main advantages.

Whole Identity Monitoring versus Credit Monitoring

Free Computer Intrusion Checkup

Business Protection Plans

Greenfield Mgmt & Tax Services has negotiated a lower price for clients who sign up through our website. Greenfield Mgmt & Tax Services will also receive a small fee to help pay for advertising and education for our clients.

To view the protection plans offered, choose the links below: